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Agency Sector Set to Grow

An initial survey of attendees to the Online Marketing 07 show reveals excellent news for the industry. Nearly half of attendees say they'll be working with a digital agency in the next year.

An initial survey of attendees to the Online Marketing 07 show reveals excellent news for the industry. Nearly half of attendees say they'll be working with a digital agency in the next year.

A fifth of those who took part in the poll now spend more than half of their total marketing budgets online. This figure has almost doubled since an equivalent poll conducted last year. This is particularly good news for agencies with 47 per cent of respondents indicating they plan to work with a digital agency in the next 12 months.

The reasons for this move to digital give food for thought, though. Nearly two-thirds (61 per cent) of those surveyed said they believed online marketing provides the most accountable return on investment compared to other marketing strategies. But despite this sentiment the results also suggest a continuing need for investment in this area, with almost half of respondents saying that tracking represented their greatest educational challenge.

Email marketing, banner advertising, paid search and search engine optimisation were the key areas of investment in the past year.

the survey found that 44% of respondents cited social media as a growth area, 42% cited the mobile arena and 36% said that SEO was going to be the growth channel of the next twelve months. The growth of social media marketing is particularly strong in the travel and public sectors with 66% and 60% of respondents in those areas naming it as the biggest growth sector. Marketing agencies have got their eye on the mobile market with 65% citing mobile as the biggest growth area for them, but the financial sector still sees its strength in traditional areas with 47% of respondents naming search and 41% naming email as key growth areas.

Social media and online PR were named as focus areas for investment (by over 50% of respondents) in the upcoming year. Replacing mobile and SEO, which came top last year.

The OMS study, which surveyed guests who will be attending the 2007 show, follows research carried out by the Internet Advertising Bureau which saw digital marketing continue to grow, breaking the £2bn mark for the first time.

Online Marketing 2007 will take place on 26-27 June at the Business Design Centre, Islington, London. Visit www.onlinemarketingshow.co.uk to register